Fed Govt, states talks on Excess Crude Account collapse

For the umpteenth time, the Supreme Court again yesterday adjourned hearing in the suit filed by the 36 states against the Federal Government over the legality of the Excess Crude Account (ECA).

The apex court had adjourned till yesterday for report of settlement but the parties failed to reach an amicable settlement as promised at the last sitting.

Praying for the understanding of the apex court, Counsel to Federal Government, Chief Wole Olanipekun (SAN), asked for an adjournment for parties to resolve the matter, which according to him, is “purely political”.

But the Plaintiffs lead counsel, Chief Adegboyega Awomolo (SAN), prayed “unresolved issues”, which he noted are above counsel but justiciable by the court.

“It appears the court may have to make pronouncement on the constitutionality of this matter, because the unresolved issues are beyond counsel in this matter but certainly below this court to adjudicate on, by way of setting down a definite hearing date.

“We have had 12 adjournments since this matter was filed in 2008, all at the instance of the defendant to seek amicable resolution with the plaintiffs, we have shown sufficient diligence, and hence the need to set a date for definite hearing if the amicable settlement option fails”.

Ruling, Justice Chukwuma Eneh, chair of the seven member panel said: “Having listened to counsel in the matter and the failure of the defendant to report back on terms of amicable settlement, this matter is hereby adjourned to May 9th, 2013 for report of settlement or a definite hearing “.

Justice Eneh ordered parties to file their processes which will be deemed appropriately filed ahead of a hearing date if the amicable settlement fails.

The Nation recalls that the states have tabled fresh demands before the Federal Government as part of conditions for amicable settlement.

According to the Terms of Settlement obtained by our Correspondent yesterday, the states are asking the Federal Government to first admit that the establishment and operation of, an its unilateral deductions from the Ecxess Crude Account during the 2004 -2007 were inconsistent with the provisions of Section 162 of the 1999 Constitution.

They also asked that the Federal Government should undertake and agree that, forthwith upon the execution of this Terms of Settlement, it shall cause all sums standing to the credit of the Excess Crude Account to be transferred to the Federation Account and distributed, within 10 working days from the execution of this Terms of Settlement, among the beneficiaries of the Federation Account, i.e the Federal Government, State Governments and Local Government Councils.

Besides, they are asking the Federal Government to bear the Legal Costs and the Professional Fees of the lawyers for all the parties. This sum is to be paid within seven days of the execution of this Terms of Settlement, directly to the Plaintiff’s lead counsel.

The states are demanding for equitable shares corresponding to each state and local government council monetary values in the National Integrated Power Project (NIPP), Railway Modernization Deductions and Ibom Power Plant Project Deductions.

To start with, they want all the assets including contracts of the NIPP which was paid for using about $8.425 billion “from the Federation Account to be clearly identified, inventoried, and valued by a competent and reputable Nigerian accounting firm;

That the Federal Government should cause a company, whose sole object shall be to takeover and operate the assets and undertaking of the NIPP, to be incorporated as a limited liability company under the Companies and Allied Matters Cap C20 Laws of the Federation of Nigeria 2004 with a share capital in a sum equivalent to the value of assets and undertaking of the NIPP as valued, among other demands.

When will the states start looking inward to tap into their resources and generate incoem locally instead of relying on crude oil revenue? What business does a state like Borno or Yobe have with excess crude account?

humphrey

amechi with his wicked governors forum will destroy this nation

Tonerro

The Governors want their hands on the loot!

Egwu

The. Governors want more money to steal.

Emeka

Evans, go and print complimentary card……You look like a cool businessman. I like the seriousness u attach to ur business but please don’t fraud unsuspecting Nigerians